NEWS

October 20, 2006

Southern Silver Exploration Corp reported today that the company was the successful bidder in an auction conducted by the Mexican Federal Government with respect to the sale of the EL Magistral Mineral Concession in the Ameca region in the State of Jalisco, Mexico. The company also reports that it has started a second phase of RC and diamond drilling on the Sorpresa-Magistral project.

The company has agreed to purchase the 1,366 hectare mineral concession by the payment of P$150,000 (CDN$ 15,600) over a twenty four month period to earn a 100% interest. The mineral concession is subject to a 1% NSR payable to the Mexican Government.

The EL Magistral claim forms an integral portion of a 110 square kilometer Sorpresa-Magistral project consolidated by the company during the past two years. The company initially acquired an option to purchase a 100% interest in the La Sorpresa claims (See NR-13-05) from a private claim owner and subsequently executed an agreement with Fury Explorations Ltd. (FUR-TSX.V) of Vancouver to earn up to 65% in the Magistral concession. (See NR-10-06).

The Magistral and El Magistral properties completely surround the La Sorpresa claims upon which the company has carried out phase I exploration work (See NR-11-06) and is currently undertaking a second phase drilling program. Up to 2500 metres of drilling is anticipated as part of the phase II program which will utilize a dual RC and diamond drill rig to test the extension of several near surface mineralized zones identified on the original La Sorpresa claims and at least one new target area on the expanded claim position, which was generated through compilation of airborne geophysical data, surface mapping and sampling.

Lawrence Page, Q.C., company president stated: "Acquisition of the Magistral claim was important to us to complete our land package and to consolidate the area for a comprehensive exploration program. Airborne magnetometer information acquired by us as part of the Fury Explorations Ltd. Agreement discloses significant exploration targets on the Magistral claim. The current exploration program will be expanded to include promising targets on the Magistral I and Magistral claim. Acquisition of the Magistral claim may well prove to be the "Jewel in the Crown".

Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results reported in this release.

president and Director of Southern Silver

Forward-Looking Information: This website may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming drilling or other mineral exploration programs, geological interpretations, receipt of property titles, potential mineral recovery processes, or other developments that Southern Silver Exploration Corp. expects to occur. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for Southern Silver Exploration Corp.’s projects, and the availability of financing for Southern Silver Exploration Corp.’s development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Southern Silver Exploration Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.